I recently read about the Federal Reserve Bank’s plan for digital dollars. Although I found it alarming, after a few days, I filed it away, thinking perhaps this was just another idea they were contemplating. And then one Fed Governor, Lael Brainard, came out a couple of weeks ago saying that while there was no policy for digital dollars, they were researching it so they would be ahead of the curve on the technology. OK, that should set us all at ease, right? Then, just this past week, Fed Chief, Jerome Powell, comes out and restates the Fed’s position of researching, or should we say testing, but still no policy change. MIT’s website posted that they had entered into a “partnership” with the Boston branch of the Federal Reserve Bank to “better understand the concept.” The article further read, the bank would work with MIT “to develop and test the use cases of a “hypothetical” central bank digital currency (CBDC).” (2) In other words, get ready. When the time is right, it’s on the way!
But before we try to answer the why, let’s talk a bit about what digital currency is. The Fed is calling it central bank digital currency, or CBDC, maybe because this is a move among the central banks of the world and not just ours. China seems to be ahead of the pack, and will be launching the digital Yuan soon. Digital means that the currency lives only as digits in a computer somewhere, and no physical bills or coins are involved. You may also have heard the term “digital wallet” being circulated around by congress. That is where this digital money would end up, in the “digital wallet” of every American citizen instead of them having to mail you a check. You may be more familiar with the term Bitcoin or crypto currency. This would be equivalent to the Fed’s own Bitcoin.
There are pros and cons to this move. As for the pros, the Fed would be able to act quicker to get aid to each American in the event of another crisis such as the Coronavirus pandemic that has currently decimated a large portion of the U.S. economy, and as we said already, there would be no printing of bills or massive mail outs of government checks. The cons of this type of currency is that now the Fed is able to keep track of each transaction that occurs in the life of a digital dollar, and for that matter, they’d be able to control, if they so desired, what you could and could not spend it on. Or even spookier still, if you were labeled as a domestic terrorist for some reason or non-compliant with you COVID-19 vaccinations, your digital money could easily be blocked at the airline counter.
On the surface, the why question should be easy, right? The reason for the digital dollars discussion in the first place is because of the Fed’s slow response in getting the much needed aid to the citizens during heat of the mandated shutdowns. You know, it’s always about a crisis. We know congress is good at ramming massive legislation through in a crisis mode. Streamlining the Fed process is good in one sense, and downright alarming in another. Since economic meltdown of 2008, and the many cash injections since then, you may have heard the growing frustration on how all the bailout money quickly ends up in the hands of the Wall Street bankers, and somehow, strangely, the funds never made it to Main Street. The Feds loan the money to the banks and banks are supposed to lend it out. During the current pandemic, the government did send direct stimulus checks to the citizens, whether you needed it or not, and increased the unemployment benefits by and extra $600 dollars a month. There were reports of people making more money on unemployment that they did when working. The PPP loans and other corporate bailouts, again, did not all seemed to end up where it was needed most. The Feds make the funds available to the banks at near zero percent interest, and instead of lending it to people who need it, the big banks buy up their own stocks to drive the share prices up. There is also the issue of how to get the emergency funds in the hands of some 9 million U.S. citizens without banking accounts. So we know changes are definitely needed in the distribution process, but how and to what extend is the question.
The Fed has another problem that this unprecedented direct IV into each American’s household may also be seeking to address. That is, it can’t produce the inflation it wants, or should we say desperately needs. The Zero Hedge article states that the Feds need “broad inflation” because that is the only way to preserve the American lifestyle as we know it, and without it, the Feds will not be able to eliminate the “countless trillions of excess debt.” (1) As George Gammon of the Rebel Capitalist podcast puts it, there are only three choices a government has in dealing with this type of debt: tighten its fiscal belt and produce more goods, go to war, or inflate its way out of it. He thinks that the U.S. will choose the way of hyper-inflation. A helpful definition for inflation that I heard was having more dollars chasing the same amount of goods. I suppose hyper-inflation would be having even more dollars chasing the same amount of goods. In other words, at some point, your dollars become worthless.
Robert Kiyosaki, author of Rich Dad, Poor Dad, said that when the famous investor, Warren Buffet, recently dumped billions in banking stocks and bought up gold mining stocks, that was a tale tale sign for the banking industry. Kiyosaki believes that the Feds are going to circumvent the banks all together and go straight to the households. He also stated that in his opinion, the Fed’s goal is to give each citizen UBI, or Universal Basic Income. The inflation target of the Fed had been a fixed one, set at two percent, but now in another stunning move, the Feds announced that they now will have a moving target which they call Flexible Average Inflation Target. Many experts in the financial realm criticized the move saying this would now allow the Feds to keep the money printing press going even with inflation ratcheting up. The Zero Hedge article explained with this new loophole, the Feds will keep inflation at red hot levels “even as the standard of living in America collapses to the benefit of a handful of asset holders.” (1)
Supposedly, changing to digital dollars will address some of those problems of distributing emergency funds by cutting out the middle man. But wait, who is the middle man? The U.S. Treasury, the U.S. Congress, or the U.S. banks? Such a move by the Feds to make direct deposit to every American, would certainly be an unprecedented one and also would drastically streamline the current process. But to me, it is not all together clear who this change would eliminate. According to drafters of the Fed’s plan, or “recession insurance bonds” as they call it, congress would approve a certain percentage of the GDP to the Feds, and the Feds would then be able to quickly purchase bonds without having to go to the private markets. With the newly approved funds, the Feds would monitor certain triggers, such as unemployment or interest rates reaching a certain point, and be able to rapidly flood the digital dollars to every household. The Zero Hedge article, reading between the lines, concludes that the proposed digital dollar move would be the final piece to an “unprecedented overhaul” of the Fed’s fiat monetary system that would essentially bypass the congress and the commercial banking system as a “handful of technocrats quietly take over the United States.” (1)
Don’t be fooled though! This direct money line of digital dollars straight from the Feds would come with a price tag. And might I add, it is not really clear who the Feds really are. They are certainly not a branch of the U.S. Government as their name implies. In another related Zero Hedge article, Central Bank Digital Currency, A Growth Or Financial Repression Tool?, the author claimed that the Fed’s digital dollars “is basically another step in the effort to gradually get rid of physical currencies, with an idea of strengthening control of the payments and make it simpler to trace the use of a particular means of payment.” The author also contests the Fed’s claim that digital dollars would not be more efficient, but instead, it would be “another means of repression.” The author also pointed out that the central bank’s goal for negative interest rates was to get you to spend more. (The Feds have not yet gone so far, but have been toying with the negative interest idea. In other words, you would be penalized for letting your money sit in the bank). (3)
But thus far, the Fed’s efforts have failed. So now, in their ongoing effort to get money moving again, the central banks think that with CBDC (replacing real money with digital dollars) on top of the negative interest rates plus the infusion of trillions of dollars will certainly do the trick. (3) But that’s only if we are dumb enough to buy into their logic. Cryptocurrencies were invented in the first place because people didn’t trust the manipulation of currencies by the corrupt bankers. Plus, the inventors of these forms of digital currency wanted to maintain some type of anonymity in their transactions. Anonymity obviously isn’t what the Feds and other central bankers of the world are trying to do. Some think such a move by central bankers though may have the opposite effect and cause people to seek out other forms of currency, or turn to real money. Why? Because again, not everyone is going to trusts the digital currency from the central bank especially when the central bankers seem bent on destroying what little value currencies still have left.
Early in the pandemic, we sent out a warning we received from Jim Rickards, a former CIA financial analyst, who said that “the real reason for the war on cash was so that it would allow the elites to impose negative interest rates, account freezes, and confiscation.” He said it was much easier for the elite to control your money “if they first herd you into the digital cattle pen.” Wow, that was before we heard of the Fed’s proposal new proposal. Now, the Fed’s push for digital dollars and digital wallets is taking the war on cash to another level!
We had all best keep some cash on hand. Better yet, you really need to have some gold and silver on hand too. One wise brother told me he was in favor of investing in land, for he said, “They are not making any more land.” I guess the same could be said of gold and silver too. But as for dollars, the Fed has insured that they can keep the printing press going with their latest movable inflationary target. And to no longer be slowed down by congress and the banking system anymore, the Fed now wants to direct deposit digital dollars straight to your digital wallet. Think twice before accepting tons of handouts from the Feds or the government for that matter. For what the government giveth, it can surely taketh away! Or should we say, the Fed may giving an abundance of digital dollars in a time of distress, but as with all government handouts, they will surely take away your anonymity in spending. If your transactions can be tracked, is it a far stretch that the next step would be controlling when and where you are able to spend your digital dollars? Then here is the other catch. Now if you had a stack of cash under you mattress as the old folks used to do, negative interest rates would have no effect on you, but it would slowly dwindle your digital dollars out of your digital wallet if you tried to save instead of spending them.
Maybe all the speculations about government control may seem a bit farfetched to you, but for the student of Bible prophecy, this should come as no surprise. The Bible has been predicting this all along. In the Tribulation there is coming a ruler that will force you to worship him and take his mark. The Bible says that “no man might buy or sell, save he that had the mark… (Rev. 13:17).” Should the Feds, in crisis mode, give you digital dollars and control how and where you can spend them, this would be small potatoes compared to what this madman known as the Antichrist will do shortly after he deceives the world with his “peace and safety” diplomacy.
We can only speculate about digital dollars, and also digital tattoos to be used for vaccinations as we read in earlier reports, but rest assured, there is coming a day when all the financial systems of the world will meltdown and new one world currency will arise to save the day. This mark of the beast will come with a price tag of forced beast worship just in order to buy and sell. If one does not cooperate, the Bible says this second beast will cause “as many as would not worship the image of the beast should be killed” (Rev. 13:15). But there is something much more important that all this in given in the book of Revelation’s glimpse of the future. The Bible says all “whose names are not written in the book of life of the Lamb slain from the foundation of the world” will worship him (Rev. 13:8). Did you see that? No matter how smart or powerful you think you are, you will worship the beast if your name is not written in the book! Is your name in the book? Have you made Jesus the Lord of your life? If not, please ask him into your heart today while it is still called today!
1. In Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit “Digital Dollars” Directly To “Each American,” https://www.zerohedge.com/markets/loretta-mester-hints-fed-preparing-deposit-digital-dollars-directly-each-american
2. “Boston’s Federal Reserve Bank and MIT to Tackle Digital Currency Research” by Cointelegraph, https://dci.mit.edu/research/2020/9/1/bostons-federal-reserve-bank-and-mit-to-tackle-digital-currency-research-by-cointelegraph.
3. Central Bank Digital Currency, A Growth Or Financial Repression Tool?, https://www.zerohedge.com/crypto/central-bank-digital-currency-growth-or-financial-repression-tool